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B-261879 1 (1995-10-31)

handle is hein.gao/gaocrptacde0001 and id is 1 raw text is: Comptroller General of the United States Washington, D.C. 20548 Decision Matter of: DGS Contract Services, Inc. File: B-261879 Date: October 31, 1995 Richard D. Lieberman, Esq., Sullivan & Worcester, for the protester. Sharon K. Gipson, Esq., Department of the Treasury, for the agency. M. Penny Ahearn, Esq., and David A. Ashen, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protest that firm, fixed-price contract format imposes undue risk on the contractor is denied where protester has not shown that choice of format was unreasonable; the majority of the required contract effort consisted of requirements for services of certain quantities and delivery times, and the solicitation provided a mechanism for adjusting the contract price to reflect any changes in actual requirements. 2. Solicitation provision for single price to be used in pricing both permanent increases and decreases in guard service hours of up to 25 percent is not improper; the provision affects all potential offerors equally and offerors are expected to determine their prices taking into consideration amount of risk involved. DECISION DGS Contract Services, Inc. protests the terms of request for proposals (RFP) No. IRS-95-SE-17, issued by the Department of Treasury, Internal Revenue Service (IRS), for security guard services. The protester objects to the contract format and argues that the solicitation's method of pricing changed requirements imposes undue risk on the contractor. We deny the protest. BACKGROUND The solicitation provides that award will be made on the basis of the best value. The RFP requests firm, fixed prices for basic services, additional services and changed requirements for a base and 4 option years. (A total contract price is to be calculated from the sum of the extended offered prices for all contract periods.) For basic services, the solicitation furnishes an estimate of the overall yearly productive (i.e., guard) staff-hour requirements (26,684.57 hours), as well as 1361031

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